This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Gramercy Capital Corp. Reports Second Quarter 2012 Financial Results

The Company’s legacy businesses are organized into two business segments supported by a corporate balance sheet with a strong liquidity position and no recourse debt obligations.

The Company’s commercial real estate finance business, which operates under the name Gramercy Finance, manages approximately $2.0 billion of whole loans, bridge loans, subordinate interests in whole loans, mezzanine loans, preferred equity, CMBS and other real estate related securities which are financed through three non-recourse CDOs.

The Company’s property management and investment business, which operates under the name Gramercy Realty, currently manages approximately $2.0 billion of commercial properties leased primarily to regulated financial institutions and affiliated users throughout the United States.

A summary of the Company’s GAAP financial position and operations by business segment and consolidated as of June 30, 2012 is as follows:
                                         
Corporate Finance Segment

Realty Segment

Intercompany Eliminations
Consolidated
Total real estate investments, net $ - $ 52,334 $ 28,617 $ - $ 80,951

 
Cash and cash equivalents 192,569 - - - 192,569

 

Loans and other lending investments and commercial   mortgage-backed securities
- 1,839,546 - (28,497 ) 1,811,049

 
Repurchased collateralized debt obligation bonds 47,351 - (47,351 ) -
Other assets   -     131,832     5,452     1,157     138,441  

 
Total assets $ 239,920   $ 2,023,712   $ 34,069   $ (74,691 ) $ 2,223,010  

 
 
Collateralized debt obligations $ - $ 2,393,354 $ 27,227 $ (74,578 ) $ 2,346,003

 
Derivative instruments - 180,753 - - 180,753

 
Dividends payable 26,857 - - - 26,857

 
Other liabilities   -     15,498     6,829     (113 )   22,214  

 
Total liabilities   26,857     2,589,605     34,056     (74,691 )   2,575,827  

 
 
Total equity   213,063     (565,893 )   13     -     (352,817 )

 
Total liabilities and equity $ 239,920   $ 2,023,712   $ 34,069   $ (74,691 ) $ 2,223,010  

 
 
Revenues:
Net interest income $ - $ 16,445 $ (404 ) $ - $ 16,041

 
Rental and reimbursement revenues - 789 924 - 1,713

 
Management fees - - 9,616 - 9,616

 
Other revenue (1)   -     1,527     -     -     1,527  

 
Total revenues   -     18,761     10,136     -     28,897  

 
 
Expenses:
Property operating expenses - 3,052 6,353 - 9,405

 
Impairment and loan losses - 21,995 - - 21,995

 
Management, general and administrative 9,822 1,264 842 - 11,928

 
Depreciation - 115 197 - 312

 
Other expenses   -     -     -     -     -  

 
Total expenses   9,822     26,426     7,392     -     43,640  

 
 

Loss from continuing operations before    provision for taxes
$ (9,822 ) $ (7,665 ) $ 2,744   $ -   $ (14,743 )

 
 
(1) Includes equity in net income from joint venture.
 

The Company’s GAAP book value per common share is negative $(8.39) per share, or $(439.0) million at June 30, 2012. Of the negative book value, approximately $(565.9) million, or $(10.82) per common share, is attributable to the Company’s commercial real estate finance business. While the assets and liabilities in the CDOs are consolidated on the Company’s books for GAAP purposes, the Company’s exposure to loss is limited to its investment in each CDO. The negative book value of the commercial real estate finance business is primarily attributable to impairments and mark-to-market adjustments made to the loan and CMBS investments financed in the CDOs in excess of the Company’s equity investment in each CDO. Due to the non-recourse nature of the CDOs, ultimately, any loss in excess of the CDO liabilities outstanding will not be realized by the Company.

2 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,654.77 +369.26 2.27%
S&P 500 1,987.66 +47.15 2.43%
NASDAQ 4,812.7080 +115.1720 2.45%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs